Its aim is to create new technology that will reduce the cost of solar power.

Energy Minister Martin Ferguson says it is the biggest solar energy research investment in Australia’s history.

“The funding will see the establishment of two strategic research initiatives, the $33m US-Australia Institute for Advanced Photovoltaics and the $35m Australian Thermal Research Initiative,” Mr Ferguson said.

“These initiatives will accelerate solar technology development faster than either country could do working alone.”

US-Australian Institute for Advanced Photovoltaics director Martin Green told Radio National this morning that Australia was leading the world in development of cheaper, better photovoltaics, the technology used in most solar panels.